TLDR
- Rigetti Computing posted Q3 adjusted loss of 3 cents per share, beating analyst forecasts of 5 cents.
- Operating losses grew to $20.5 million from $19.9 million in Q2 and $17.3 million year-over-year.
- Two purchase orders worth $5.7 million secured for Novera quantum systems with 2026 delivery.
- Stock fell 2% to $33.08 but has surged over 2,000% in the past year.
- Company holds $600 million in cash reserves and targets 100+ qubit system by year-end.
Rigetti Computing shares dropped 2% to $33.08 after releasing third-quarter results. The quantum computing company topped earnings estimates but showed growing operating expenses.
The Berkeley-based firm reported an adjusted loss of 3 cents per share on $1.9 million revenue. Wall Street expected a 5-cent loss on $2.2 million sales.
Full-year projections call for a 29-cent per share loss on $8.1 million revenue. That compares to 2024’s 36-cent loss on $10.8 million sales.
Despite the daily decline, the stock has rocketed over 2,000% in 12 months. Year-to-date gains sit at 117%.
CEO Subodh Kulkarni highlighted strong demand for on-premises quantum systems. The company also supports Nvidia’s NVQLink platform for quantum-AI integration.
Operating Expenses Continue Climb
Third-quarter operating losses hit $20.5 million. That’s up from $19.9 million in Q2 and $17.3 million in last year’s third quarter.
The GAAP net loss reached $201.0 million. Non-GAAP net loss totaled $10.7 million.
Competitor IonQ reported $39.9 million revenue last week, more than tripling year-over-year sales. D-Wave Quantum’s earnings disappointed investors despite strong 2025 performance.
B. Riley Securities cut Rigetti to Neutral from Buy, citing potential government funding delays.
Commercial Traction Builds
Rigetti landed two purchase orders worth $5.7 million in late September. Both orders are for 9-qubit Novera quantum systems.
An Asian tech manufacturer ordered one system. A California AI startup ordered the other.
Deliveries are scheduled for the first half of 2026. The orders represent progress beyond government contracts.
Government work remains a major revenue source. The Air Force Research Laboratory awarded Rigetti a $5.8 million contract earlier this year for quantum networking research.
Development Roadmap Advances
Rigetti maintains $600 million in cash and investments as of November 6. Warrant exercises brought in $46.5 million.
The company plans to deliver a 100+ qubit system by end of 2025. Expected two-qubit gate fidelity is 99.5%.
A 150+ qubit system is targeted for late 2026 with 99.7% fidelity. The roadmap includes a 1,000+ qubit system by late 2027 with 99.8% fidelity.
Rigetti launched cloud-based quantum computing in 2017. On-premises systems started selling in 2021.
The 9-qubit Novera unit debuted in 2023 for research applications.
International expansion continues with partnerships at Montana State University and India’s C-DAC. A new Italian subsidiary will target European markets.
Management holds an earnings call Tuesday at 8:30 a.m. Eastern time.
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